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Edited version of private advice
Authorisation Number: 4120069103245
Date of advice: 26 September 2019
Ruling
Subject: Section 99A - commissioners discretion
Question
Will the Commissioner exercise the discretion under subsection 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) to apply progressive concessional rates of tax as per section 99 of the ITAA 1936?
Answer
Yes.
The Trust consists of property that was transferred to the trustee directly as the result of the death of a person and out of a superannuation fund (per subparagraph 99A(2)(d) and 102AG(2)(c)(v) of the ITAA 1936). After consideration of the relevant factors, the Commissioner is of the opinion that it would be unreasonable that section 99A of the ITAA 1936 should apply in relation to that trust estate in relation to the relevant year of income. Accordingly section 99 of the ITAA 1936 will apply.
This ruling applies for the following periods:
Year ended 30 June 2019
Year ended 30 June 2020
Year ended 30 June 2021
Year ended 30 June 2022
Year ended 30 June 2023
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The Beneficiary was born on XX September 20XX
The Beneficiary is under a legal disability.
The Deceased passed away on XX November 20XX
The Deceased held a superannuation fund.
The Trust was created.
An amount was received from the superannuation fund.
The Beneficiary is not presently entitled to trust income.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99
Income Tax Assessment Act 1936 section 99A
Income Tax Assessment Act 1936 section 102AG